Energy Sector Heats Up Again: Opportunity or Risk for Your Long-Term Investment?

Jakarta — High volatility has returned to the global commodities sector in March 2026. Disruptions to strategic logistical corridors in the Middle East and uncertainty surrounding gas distribution in Eastern Europe have triggered significant price surges. In this dynamic situation, the speed with which investors respond to supply chain shifts has become crucial to protecting asset values. A comprehensive analysis of the energy and industrial metals sectors is essential for staying ahead in investment decision-making.

Energy: European Natural Gas in a Vulnerable Position

Historically, the European Union has attempted to reduce its dependence on Russian gas. However, data shows that in 2025, the EU still imported approximately 38 billion cubic metres (bcm) of natural gas and LNG from Russia, equivalent to 12% of their total import requirements. This is troubling for Europe for several reasons:

Gas Reserves Depleting: EU gas reserves currently stand below 30%, the lowest level since the 2022 energy crisis.

Persistent Dependence: Despite reductions, the EU still imports approximately 38 billion cubic metres (bcm) of gas and LNG from Russia in 2025 (around 12% of total imports).

Domino Effect: Disruptions to LNG supplies from the Persian Gulf resulting from Middle Eastern conflicts are tightening the global market. Should there be any escalation in gas export restrictions from Eastern European regions, natural gas prices (such as TTF futures contracts) are predicted to continue rising. Crude oil is also expected to rise alongside the ongoing conflict in the Strait of Hormuz.

Options for US Equity Diversification:

Exxon Mobil (XOM) and Chevron (CVX): Energy giants with substantial exposure to global natural gas production.

Occidental Petroleum (OXY): A company favoured by Warren Buffett that is highly sensitive to rises in domestic and global energy prices.

Industrial Metals: Aluminium Reaches Highest Level Since 2022

Aluminium is a critical metal for the automotive, construction, and food packaging industries. When Alba, one of the world’s largest producers with output of 1.6 million tonnes, halted shipments, global supply immediately went into deficit.

Not only Bahrain, but Qatalum in Qatar also experienced operational disruptions due to drone attacks that severed power supplies to their smelters. The Gulf region accounts for approximately 8% of global aluminium production. The result? Aluminium prices on the LME surged to their highest level since 2022 at US$3,446 per tonne.

Related Listed Companies:

Vale (VALE): Although primarily known for iron ore, this major mining company has diversified industrial metals holdings, making it an alternative investment option when producers in conflict zones are paralysed.

Freeport-McMoRan (FCX): Focused on copper and gold. Copper often moves in tandem with aluminium as an indicator of industrial metals strength.

Precious Metals: Gold Remains a Defensive Bulwark

Amid uncertainty, gold has once again demonstrated its worth as a safe-haven asset.

Price Rebound: After dipping below US$5,000/oz, buying during price weakness (buy the dip) immediately pushed prices back up.

Dual Sentiment: On one hand, rising energy prices trigger inflation concerns (which typically keep interest rates elevated, a negative sentiment for gold). On the other hand, extreme geopolitical risks provide a strong risk premium for gold and silver prices.

Through the Pluang application, you can easily access various instruments:

PAX Gold (PAXG): A digital token with each unit backed by one troy ounce of physical London Good Delivery gold stored in Brink’s vaults. PAXG offers a unique advantage: it combines the security of physical gold with the speed and liquidity of blockchain technology. You can transfer or trade your gold 24/7 without holidays.

Tether Gold (XAUT): Similar to PAXG, XAUT provides ownership of specific physical gold held in Swiss vaults. It is a popular choice for users of the Tether ecosystem seeking stable hedge assets. Additionally, on Pluang, you can purchase XAUT futures through XAUTUSDT-PERP.

SPDR Gold Shares (GLD): For those more comfortable trading in equity markets, GLD is the world’s largest gold ETF. GLD tracks spot gold prices and is the most efficient way for institutional and retail investors to gain gold price exposure without the burden of physical storage management. On Pluang, you can also purchase GLD call options if bullish on gold and put options to profit when gold prices decline.

Digital Gold (Antam/UBS): Physical gold investments starting from small nominal amounts with the option to redeem physical precious metals.

According to Jason Gozali, Head of Research at Pluang, alongside gold there is silver. Silver is often called “gold for the common person,” though its current movement is heavily influenced by two factors. As an investment asset, silver follows gold’s rise. As an industrial metal, silver benefits from the scarcity of other metals. On Pluang, you can purchase the iShares Silver Trust (SLV), managed by BlackRock since 2006. BlackRock is one of the world’s largest fund managers with total assets under management of US$14 trillion as of January 2026.

Agriculture: Threats to Food Security

This energy crisis is also beginning to affect the agricultural sector. Fertiliser producers in India and Pakistan have begun reducing production due to limited LNG supplies.

Rising fertiliser raw material costs (ammonia and sulphur) have the potential to increase food commodity prices ahead of the planting season. This is a factor that investors with exposure to agricultural ETFs or food-related stocks should monitor carefully.

Relevant US Stocks:

CF Industries (CF): A major fertiliser producer in North America that could benefit from rising global fertiliser prices resulting from limited supplies from competitors in Asia/Middle East regions.

Deere & Co (DE): A heavy agricultural equipment manufacturer that frequently benefits from sentiment shifts in the agricultural sector.